Family home deposit scheme and new budget

In a new year a few new things have happened. Firstly, grocery prices have gone up which means that my $100 budget a fortnight is no longer really cutting it. I have raised it to $150 just to cover the basics. This is sad but we are also eating better being able to add some Farmers market veg in there which yes would be cheaper in the supermarket but I prefer to not only support local small farmers but the food is cleaner and tastes better. 

Fuel is also back on the rise after the slump in 2020 which means my tank now costs $70 a week rather than $50. Boo.

The third thing is that the Government has opened places for single parents to purchase a home with just a 2% deposit without having to pay lenders insurance. I might have had a bit of a rant on a certain youtubers page when he suggested that this was an attempt to break up families and win the election. Clearly that middle aged white male has never had to buy a house and support a family in todays economy. For those also thinking that's an insane idea let me clear a few things up. 

Firstly there is a cap on the max price home you can buy for each area. In Canberra I believe its $600k because homes here are really expensive. HOWEVER. You also have to be approved for the mortgage by the registered banks which means you still have to pass their means test. They aren't going to offer a $600k loan to someone only earning $40k a year.  

Single parents aren't idiots. It's not encouraging us to be single by offering this. Being a single parent is often the result of a toxic relationship where you and your child are much safer and happier away from the other person. This includes mothers, fathers, aunts, grandmothers/ fathers and widows who support a child or children on their own. 

Most single parents are well aware of their limits. We have been supporting ourselves for a while. I for one could borrow far more than I am intending. Because I know full well that interest rates aren't going to stay low and that I need to be reasonable in what I can pay off. My upper limit I am willing to borrow is at the bottom of my affordability. So I could afford something much larger but I'm not going to put myself in that position. I would rather pay more off the loan while rates are low and have a little extra in my pocket then buy some massive house that I have to sell in 5yrs because I cant afford the repayments. 

Rent is currently more than a mortgage in Australia. Yes that's right, I'm comfortably paying more to rent than I would be paying off my mortgage. This however also means that it makes it really difficult to also save a deposit on top of rent. How many people do you know who can buy two houses? Because thats what we are trying to do, save for a deposit of a home while paying off someone elses home. In Australia many banks want at least a 10% deposit with many expecting 20% which is about $90k. For me this means saving every last cent I have for about 15yrs to afford it. Which means that when I retire I'm not going to own a home and will be living off government pension which is not nearly enough to support anyone. This means that the government needs to get people into their own home to save them having to be supported later. They aren't giving us money, they are just allowing us to pay off our own homes rather than someone else's. 

Lastly and sadly alot of single parents cant afford to do this anyway. However it does give us that leg up so that those who can afford it can get off that cycle of government support payments and into a secure place. They are paying off their own homes and getting ahead in life with an asset under their belt. When the kids are grown up we can work more and pay it off in time for retirement. I know many parents in my facebook groups have seen the light to start saving where before they knew there was no hope without a partner, which also drove many people into relationships which weren't healthy just to afford basic living.  

I myself should be able to get into my own home early next year which for me is a big weight off my shoulders to know that my landlord cant just kick me out whenever they please and that I can tailor the home to suit my needs. I can save money by upgrading insulation and appliances and installing Solar. In the long run it is much better for everyone involved to get into their own home!
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